Supreme Court holds Education Cess not Allowable as Expenditure u/s 40(a)(ii) as amended retrospectively in Budget 2022

Clipped from: https://www.taxscan.in/supreme-court-holds-education-cess-not-allowable-as-expenditure-u-s-40aii-as-amended-retrospectively-in-budget-2022/234991/?utm_source=izooto&utm_medium=push_notifications&utm_campaign=Supreme%20Court

By Manu Sharma A S – On December 17, 2022 6:36 am

Supreme Court - Education Cess - Expenditure - Budget 2022 - taxscan

The Supreme Court has held the education cess paid to be not allowable as expenditure under Section 40(a)(ii) of the Income Tax Act, 1961 amended retrospectively vide Finance Act, 2022.

The two-judge Bench of Justice Sanjiv Khanna and Justice M M Sundresh observed that “in view of the amendment vide the Finance Act, 2022 with retrospective effect from 01.04.2005 to Section 40(a) (ii) of the Income Tax Act, 1961, the present appeal has to be allowed.” and allowed the appeal of the Revenue in M/s Chambal Fertilizers & Chemicals Ltd v. JCIT-2, Kota.

It was also pointed out that, the Education cess paid by the respondent-assessee would not be allowed as an expenditure under Section 37 read with Section 40(a)(ii) of the Income Tax Act, 1961.

The representative of the assessee submitted that the applicable tax was paid on disallowance.To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

Be the First to get the Best

Join Our email list to get the latest Tax Updates , Special Offers, Events delivered right to your Inbox

Email Address *

JOINT COMMISSIONER OF INCOME TAX vs M/S. CHAMBAL FERTILISERS & CHEMICALS LIMITED

CITATION:   2022 TAXSCAN (SC) 212

View My Bookmarks

Topics

Budget 2022Education CessFinance Act 2022section 40(a)(ii) of the Income Tax ActSupreme Court

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s